Preference for cost-effective and environment-friendly options in the automotive industry has led to an upsurge in demand of hybrid and plug-in hybrid vehicles. In addition, imposition of various government regulations is projected to impact the global market growth positively. Persistence Market Research states that the global market of automotive lithium ion battery pack is projected to reflect a CAGR of 12.5% over the forecast period, 2017-2026.
Factors Fuelling Global Market Growth
Growth of the global automotive lithium ion battery pack market is mainly bound to various macro-economic and micro-economic factors. As the need for rechargeable batteries with the high energy density continue to increase, demand for the lithium ion batteries is projected to remain high. Adoption of the lithium ion batteries is mainly bound to increasing production of the digital cameras, smartphones, tablets/PC and power tools. With the increasing registration of vehicles, sales of the automotive lithium ion battery packs is projected to increase significantly in the automobile industry.
Governing authorities in several countries are encouraging the automotive manufacturers to opt for environment-friendly options. Government in several countries are further promoting the adoption of various plug-in hybrid and hybrid vehicles in the global market. In order to lower the level of pollution, the automotive manufacturers are increasingly focusing on utilization of the sustainable energy. Adoption of plug-in hybrid and hybrid vehicles for public transportation purposes is further expected to contribute towards the global market growth significantly.
Sales of the lithium ion batteries will also continue to remain high attributed to increasing demand for smartphones with enhanced battery capacity. Speedy draining of the battery life will continue to become a major concern among the manufacturers of smartphone. In order to offer enhanced battery life and capacity, manufacturers are significantly opting for lithium ion batteries during the production of various smartphones. On the other hand, the level of performance of the lithium ion batteries can also degrade and decay the battery in hot temperature conditions. This factors could pose a major challenge towards the global market growth of automotive lithium ion battery packs over the forecast period.
Sales to Remain High for the Hybrid Electric Vehicles
Increasing adoption of hybrid vehicles as a public transport is projected to fuel demand for a battery capacity of less than 20 kwh. In terms of revenues, the less than 20 kwh battery capacity segment is projected to witness the highest growth, recording for more than US$ 5,100 Mn by 2026-end. On the other hand, the more than 41 battery capacity segment is projected to reflect a significant CAGR over the forecast period.
By 2017-end, the hybrid electric vehicle (HEV) vehicle segment is projected to represent a significant revenue growth, accounting for more than US$ 2,000 Mn. In contrary, the full battery electric vehicle (BEV) vehicle segment is projected to reflect a robust CAGR throughout the forecast period.
Based on vehicle type, the others vehicle type segment is projected to reflect a healthy CAGR over the forecast period. However, the passenger vehicle type segment is projected to generate significant revnues, recording for more than US$ 8,100 Mn by 2026-end.
Major players in the global market of automotive lithium ion batteries pack are Panasonic Corporation, Automotive Energy Supply Corporation, GS Yuasa Corporation, BYD Company Limited, Samsung SDI Co., Ltd., LG Chem Ltd., Hitachi Chemical Company, Ltd., Tesla Motors, Inc., Johnson Controls International Plc., Narada Power Source Co. Ltd., Tianneng Power International Co., Ltd., Johnson Controls International Plc., Furukawa Electric Co., Ltd., Crown Battery Corporation, Wanxiang Group Corporation, EnerSys, Hoppecke Batterien GmbH & Co. KG., Leoch International Technology Ltd., East Penn Manufacturing Co., Toshiba Corporation and Coslight Technology International Group Co., Ltd.